U.S. stocks tumbled on Friday as investors reacted to weaker-than-expected economic reports. The Dow Jones Industrial Average fell sharply, dragged down by losses in the financial and industrial sectors.
Key Economic Data Disappoints
The Commerce Department reported that GDP growth slowed to 1.8% in the first quarter, well below analysts’ expectations. This raised concerns about the strength of the economic recovery.
Additionally, consumer sentiment data released by the University of Michigan also came in below forecasts, suggesting that consumers remain cautious about the economic outlook.
Market Performance
The Dow Jones Industrial Average closed down 1.5%, while the S&P 500 lost 1.3%. The Nasdaq Composite declined by 1.1%.
Sector Breakdown
- Financial stocks were among the hardest hit, with major banks experiencing significant declines.
- Industrial stocks also suffered losses, reflecting concerns about slowing economic growth.
- Technology stocks fared slightly better, but still closed lower on the day.
Analyst Commentary
“The market is reacting to the combination of weak economic data and ongoing concerns about inflation,” said John Smith, chief investment strategist at ABC Investments. “Investors are becoming more risk-averse and are selling off stocks in response.”
The weak economic data has led some analysts to lower their forecasts for economic growth in the coming quarters. This could put further pressure on stock prices in the near term.
